Muza S A : Report No 4 - Change in fair value of investment property

Change in fair value of investment property.

Current report No. 4/2022

Legal basis: Article 17, paragraph 1 of the MAR - confidential information.

The Management Board of Muza S.A. in Warsaw (the Issuer) announces that, on 4 March 2022, the Board adopted a resolution on changing the fair value of an investment property based on an opinion on the fair value of this investment property, which is plot No. 24/26 containing a hotel building in Spała. The property valuer determined the value of the property at PLN 14,112,000 as at 31 December 2021. The Issuer holds a 69.74% share in this property, thus its balance sheet value increased as a result of the revaluation by PLN 779,693 to PLN 9,841,709. The increase in value will be included in the gross result for 2021.

The fair value of the property was determined in the income-based approach using the profit method. Additionally, the replacement value of the property (the plot in the comparative approach, the building in the cost-based approach) was determined.

The increase in value was caused by better financial results of the subsidiary PDK S.A., which is the hotel operator, the general improvement in the economic situation on the tourist market caused by the easing of restrictions related to the coronavirus pandemic. Compared to 2020, the hotel was open in 2021, welcoming guests and consequently generated incomes.

This information was deemed to meet the requirements of Article 17, paragraph 1 of the MAR due to significant-in the opinion of the Company's Management Board-changes recorded with respect to consolidated and separate financial results.